Homebuyers to get 15 day head start on Freddie Mac homes - Investors must wait

Beginning Sept. 17, 2010, Freddie Mac will allow Buyers an initial 15 day period to make offers on their properties without competition from investors. The "First Look Initiative" is part of the ongoing Neighborhood Stabilization Program and supports Freddie Mac's mission to stabilize communitites through the creation of affordable homewonership opportunities.

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Here are some Questions and Answers about the "First Look Initiative":

What is the effective date of the Freddie Mac First Look Initiative?
September 17, 2010

How does the Initiative work?
During the first 15 days (30 days in Nevada) a home is listed for sale in the MLS, only offers from owner-occupants, public entities or their designated partners will be considered. Offers from investors and second home purchasers may be submitted to HomeSteps, but they will not be considered until after the initial 15 days of the listing.

What homes are eligible to be included in the Freddie Mac First Look Initiative?
HomeSteps homes in listed status, listed on or after September 17, 2010, are eligible for inclusion in the Freddie Mac First Look Initiative.

How will a homebuyer or selling agent know if a home is eligible for the Freddie Mac First Look Initiative?
Buyers may contact their selling agent or the listing broker with questions regarding the eligibility of a property; this information will also be included in MLS property listing information.

How will the buyers prove that they are buying the property as their primary residence?
The buyer and the selling agent must sign an affidavit affirming that the buyer will occupy the home as their primary residence. Parties that fraudulently sign the affidavit may be subject to criminal or civil liability. The sale will be canceled and the earnest money will be forfeited.
What should the selling agent do if a non-owner occupant makes an offer during the Initiative's 15-day time period?

Submit the offer to the HomeSteps listing broker.
Investors may submit offers at any time; however, the offers will not be considered for negotiation until after the 15-day time period.

Please note: Offers from non-profits, NSP grantees and community development organizations are eligible for the Freddie Mac First Look Initiative.

If a home has been on the market for less than 15 days on the Sept. 17 Initiative launch date, will this home qualify under Initiative guidelines?
No, homes listed prior to the launch date will not be included in the Initiative 15-day time period.

Important Notes

The 15-day Initiative time period is based on MLS days, not the date of the Listing Broker listing.

Multiple offers received during the 15-day Initiative time period are processed in the same manner as a normal transaction using the multiple offers procedure.

Second home purchasers are not eligible for Freddie Mac’s First Look Initiative.

In Nevada, Freddie Mac’s First Look Initiative window for buyers who plan to become owner-occupants is being extended to 30 days.

Interested home shoppers should contact their local real estate broker for more information about the Freddie Mac First Look Initiative.


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